Question for the Group - REIT's in IRA

[Scooterd]

A buddy of mine (soon to be retired military) called me this am and asked what I was buying. I said I'm buying nothing at present. He went on to ask What do you think of AMT or CCI. I told him why are you asking me I'm a blue chip fella!! We both laughed. I told him I have not researched either, so I can not speak intelligently about either. He asked if owning them in an IRA is a problem? Again I said not knowing too much about either company I do believe they are REITs but don't know regarding K-1's and never having owned an REIT in an IRA could not intelligently speak too any tax implications holding them in an IRA.

I offered to share his questions on a dividend forum community I joined and could give him a call back later in the week with additional information of owning REIT's in an IRA and is a good Idea? and more specifically if the group shares any thoughts they may have on AMT or CCI specifically . He said that was fine. I mentioned in passing regardless of any answer(s) I received, Before investing in any company do your due diligence and ensure they are not overvalued before pulling the trigger.

So his two Basic questions (I think) were holding REIT's (in general) in an IRA (and more specifically any company information or thoughts regarding CCI or AMT)
and has anyone possibly done an evaluation of either of these companies recently? I think that was the net of it, So, if anyone cares to chime in I will pass the information along to Wayne about investing in them at the present time and for his future reference.
 - Scoot

[rnsmth]

I hold O and DLR.

I do not hold CCI or AMT, but I think jvincen follows them I do not know if he has migrated over here.

[cemanuel]

(12-10-2021, 01:34 PM)Scooterd Wrote: A buddy of mine (soon to be retired military) called me this am and asked what I was buying. I said I'm buying nothing at present. He went on to ask What do you think of AMT or CCI. I told him why are you asking me I'm a blue chip fella!! I told him I have not researched either, so I can not speak intelligently about either. He asked if owning them in an IRA is a problem? Again I said not knowing too much about either company I do believe they are REITs but don't know regarding K-1's and never having owned an REIT in an IRA could not intelligently speak too any tax implications holding them in an IRA.

I offered to share his questions on a dividend forum community I joined and could give him a call back later in the week with additional information of owning REIT's in an IRA and is a good Idea? and more specifically if the group shares any thoughts they may have on AMT or CCI specifically . He said that was fine. I mentioned in passing regardless of any answer(s) I received, Before investing in any company do your due diligence and ensure they are not overvalued before pulling the trigger.

So his two Basic questions (I think) were holding REIT's (in general) in an IRA (and more specifically any company information or thoughts regarding CCI or AMT)
and has anyone possibly done an evaluation of either of these companies recently? I think that was the net of it, So, if anyone cares to chime in I will pass the onformation along to Wayne about investing in them at the present time.?

 - Scoot

An IRA - Roth or Traditional - is the place to hold REITs. And BDCs if you are ever asked. The vast majority of the dividends are unqualified and taxed as income. But obviously, not in a tax-advantaged account. I never looked at either of those companies so I have no opinion there.

IMO a taxable account is no place to hold RICs (Regulated Investment Companies) if you have another option. Unless you want to single-handedly help the government with the budget deficit.

[mrw11g]

(12-10-2021, 02:22 PM)rnsmth Wrote: I hold O and DLR.  

I do not hold CCI or AMT, but I think jvincen follows them  I do not know if he has migrated over here.

Yes JVincen has written in detail about CCI and to some extent AMT.  CCI is mostly US based, invested heavily in 5G small cells towers and fiber, I think they have 3 major customers (I could be wrong).

AMT is also in towers, but are an international company.  They recently acquired Coresite a data center business, this concerns me as this is not AMT's strength.

CCI is a smaller company than AMT.

I hold O, DLR, AMT and CCI.

[EricL]

I own several REITs in my IRA and have zero problems. MLP's will generate K1's and UBTI that can become an issue over time, but REITs do not generate either of them.

It also makes sense to hold REITs in an IRA because all returns are treated the same whether qualified dividends, capital gains, or non-qualified dividends. REIT dividends are typically not qualified dividends, so you don't get the tax break on them in a cash account as you do with typical dividend payments.

[ChadR]

I own all my REITS in my IRA (traditional and ROTH). This is the best place for them since their dividends aren't completely qualified.

I wouldn't own MLPs in an IRA as they generate K-1s. You could generate a tax bill having them in your IRA.